SECTION 2. BACKGROUND

Public Law 117-169, 136 Stat. 1818 (August 16, 2022), commonly known as the Inflation Reduction Act of 2022 (IRA), amended §§ 45 and 48 to provide a domestic content bonus credit amount for certain qualified facilities or energy projects placed in service after December 31, 2022, and added new §§ 45Y and 48E, which include a domestic content bonus credit amount for certain investments in qualified facilities or energy storage technologies placed in service after December 31, 2024. .01 Notice 2023-38. On May 12, 2023, the Treasury Department and the IRS released Notice 2023-38, which states that the Treasury Department and the IRS intend to propose regulations for rules that taxpayers must satisfy to qualify for the domestic content bonus credit amounts under §§ 45, 45Y, 48, and 48E. Notice 2023-38 also describes a safe harbor regarding the classification of certain Applicable Project Components in representative types of qualified facilities, energy projects, or energy storage technologies.

.02 Notice 2024-41 . On May 24, 2024, the Treasury Department and the IRS released Notice 2024-41, which, among other things, modified the existing domestic content safe harbor in Notice 2023-38

by (i) expanding the non-exclusive list of Applicable Projects in “Table 2--Categorization of Applicable Project Components” from Notice 2023-38 to include hydropower and pumped hydropower storage facilities; (ii) replacing “Utility scale photovoltaic system” with “Groundmount and rooftop photovoltaic system”; and (iii) including certain Manufactured Product Components for previously listed Applicable Projects.